Calculation:

• Actual P/B ratio = Stock price / Book value per share = $50 / $25 = 2.0
• Peer group median P/B = 2.5
• Since the company's actual P/B (2.0) is lower than the peer group median (2.5), the company appears undervalued relative to its peers.

Reasoning: In the method of comparables, if a company's actual multiple is lower than the justified multiple (peer group median), it suggests the stock may be undervalued relative to comparable companies.